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Ashburn Anstalt v W J Arnold & Co

[1989] Ch 1

Case summary last updated at 24/02/2020 15:37 by the Oxbridge Notes in-house law team.

Judgement for the case Ashburn Anstalt v W J Arnold & Co

A purchaser with notice who takes “subject to” another’s rights over property may have a constructive trust imposed on him but the court would not impose a constructive trust unless it was satisfied that the conscience of the owner of the land had been affected so that it would be inequitable to allow him to deny the claimant an interest. “The test, for the present purposes, is whether the owner of the property has so conducted himself that it would be inequitable to allow him to deny the claimant an interest in the property”. This does not automatically arise where a contract sells something “subject to” another interest, as this may simply be a way of giving notice the buyer of other interests currently existing and NOT requesting that the seller respect such interests. Constructive trust is invoked if “the owner of the property has so conducted himself that it would be inequitable to allow him to deny the claimant an interest in the property”. This does shit-all for legal certainty. He should have just said either way that CT would or wouldn’t be imposed on a purchaser with notice regardless of his moral status. “Unconscionability” is just mindless voodoo. Tosser. 

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